Retailers who presented customers with a frictionless purchasing experience saw 48 percent business growth over the competition

NEW YORK, NY (NRF BOOTH #1513) – Jan. 15, 2018 – NTT DATA Services, a recognized leader in global technology services, today released its latest Customer Friction Factor (CFF℠) assessment entitled, Customer-Driven Commerce Generates Friction Challenges for Retail Industry. The research addresses the ability for retailers to deliver a superior multi-channel experience, from online purchase to in-store pickup — confirming that the consumers’ website experience is impacting the bottom line for retailers.

“The most impactful way that retailers can differentiate themselves is by delivering the best customer experience. Identifying the causes of friction across customers’ online purchasing lifecycle — and resolving them — is vital for retail leaders to maintain customer satisfaction. If customers are frustrated, first they will abandon their transactions and next, they will switch to other retailers for a better shopping experience,” said Bob May, Senior Vice President, Consumer Industries, NTT DATA Services.

NTT DATA’s comprehensive assessment used its CFF framework to measure various customer friction points across 15 top-tier retail company websites including Ace Hardware, Amazon, Auto Zone, Best Buy, Cabela’s, Dick’s Sporting Goods, Dollar Tree, Home Depot, Kohls, Lowe’s, Office Depot, Sears, Target, Walgreens and Walmart — primarily focusing on product search, information transparency, purchase availability and customer service.

Key Study findings

  • Retailers who presented their customers with a frictionless purchasing experience saw their businesses grow at a greater rate and were more profitable than their competitors. Retail leaders achieved a 48 percent improvement in revenue growth and 45 percent improvement in net income in a side-by-side comparison with their peers whose purchase experiences had poor CFF scores.
  • Leading retailers offer consumers smooth transition from online purchase to in-store pickup, streamlined purchase flow, inventory tie-in, customer expectation setting and clear communications.
  • Customers’ frustrations include pop-up ads and misdirection, plus repetitive processes and too many decision points, resulting in higher likelihood of shopping cart abandonment or post-purchase dissatisfaction from incorrect inventory information.
  • 35 percent of all friction from online purchase to in-store pickup is related to technology — excessive key strokes and page navigations, a lack of inventory knowledge and an absence of search filters.
  • Only 33 percent of organizations studied could have a product ready for pick-up within one hour of placing an order online, 50 percent could not fulfill an order same day.

NTT DATA’s unique approach to helping companies eliminate customer friction and accelerate digital experiences includes a two-pronged approach. First, a CFF assessment provides a deep analysis of quantifiable friction points and identifies appropriate recommendations with an actionable plan. Second, it helps organizations identify transformational solutions, enabling them to continually improve their customer experience by monitoring, measuring and reporting on success across key performance indicators — even as systems and stakeholders change.

About NTT DATA Services

NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most. We deliver tangible business results by combining deep industry expertise with applied innovations in digital, cloud and automation across a comprehensive portfolio of consulting, application, infrastructure and business process services.

NTT DATA Services, headquartered in Plano, Texas, is a division of NTT DATA Corporation, a top 10 global business and IT services provider with 118,000+ professionals in more than 50 countries, and NTT Group, a partner to 88 percent of the Fortune Global 100.

Media Contacts

Latest News

NTT DATA Becomes a Microsoft Azure Expert Managed Service Provider

PLANO, TX – Aug. 15, 2019 – NTT DATA Services, a recognized leader in global technology services, today announced the company has been recognized as a Microsoft Azure Expert Managed Services Provider (MSP). To be identified as an Azure Expert MSP, NTT DATA demonstrated expertise across the full cloud lifecycle during a rigorous audit conducted by an independent third party.

READ MORE

NTT DATA Named a Leader in Application Modernization and Migration Services

PLANO, TEXAS – Aug. 14, 2019NTT DATA, a recognized leader in global technology services, was named a “Leader” in the recently published report, “The Forrester WaveTM: Application Modernization and Migration Services, Q3 2019.” Forrester used a 26-point criteria to evaluate the 14 most significant providers and distinguished Leaders based on their breadth of capabilities across application modernization and migration.

READ MORE

NTT DATA Joins the Cloud Native Computing Foundation

Plano, TX U.S. – Aug. 12, 2019NTT DATA, a leading global IT services provider, today announced the company recently joined the Cloud Native Computing Foundation (CNCF). As a Silver Member, NTT DATA is positioned to more effectively support clients’ digital transformation and modernization efforts using the latest trends in cloud native technology.

READ MORE